HomeMy WebLinkAbout17-075CITY OF LAKEVILLE
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO. 17-75
RESOLUTION APPROVING AND ADOPTING FIRST AMENDMENT TO
DEVELOPMENT CONTRACT, ASSESSMENTS, AND COLLATERAL
ASSIGNMENT OF DEVELOPMENT CONTRACT
WHEREAS, Hat Trick Investments, LLC, a Minnesota limited liability company,
("Owner") is the fee owner of property located in the City of Lakeville, Dakota County, Minnesota,
legally described in Exhibit A, attached hereto and incorporated herein ("Property") to be platted as
Launch Park First Addition and developed pursuant to a Development Contract between the City
and Lakeville 222nd 2017, LLC, a Minnesota limited liability company, ("Developer") dated May
1512017;
WHEREAS, Owner and Developer have requested assessment of a portion of the costs of
City Improvement Project 17-07, together with associated legal expenses, engineering
administration and staff time, financing (bond issuance), construction observation, surveying, record
drawing preparation, permits and publications against the Property;
WHEREAS, the City has received the attached signed First Amendment to Development
Contract, attached hereto as Exhibit B, ("Amendment to Development Contract") that includes
assessment of a portion of the costs for City Improvement Project 17-07 and waiving all applicable
assessment procedural requirements and requesting to be assessment for the public improvement
costs in the amount itemized therein against the Property;
WHEREAS, the Developer has requested that the City consent to a collateral assignment of
the development contract as required by Developer's lender, to assist developer in obtaining a loan
for the construction of the project.
NOW THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota:
1. The Amendment to Development Contract is hereby accepted and approved.
2. A special assessment in the principal amounts of $701,214.38 is hereby imposed against the
Property, which shall be allocated following recording of the plat for Launch Park First
Addition as follows:
Lot 1, Block 1 = $361,826.62
Outlot A = $3395387.76
3. Such assessment shall be payable in equal annual installments extending over a period of 10
years, the first of the installments to be payable with the first installment of the 2018
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property taxes, and shall bear interest at the rate of 5% per annum from the date of the
adoption of this assessment resolution. To the first installment shall be added interest on the
entire assessment from the date of this resolution until December 31, 2017. To each
subsequent installment when due shall be added interest for one year on all unpaid
installments.
4. The owner of the Property may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to
the date of payment, to the city , except that no interest shall be charged in the entire
assessment is paid within 60 days from the adoption of this resolution; and he may, at any
time thereafter, pay to the city treasurer the entire amount of the assessment remaining
unpaid, with interest accrued to December 31 of the year in which such payment is made.
Such payment must be made before November 15 or interest will be charged through
December 31 of the next succeeding year.
5. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County
Auditor to be extended on the property tax lists of the County. Such assessments shall be
collected and paid over in the same manner as other municipal taxes.
6. A collateral assignment of the Development Contract in favor of National Bank of
Commerce is hereby approved and the Mayor and City Clerk are authorized to execute the
appropriate documentation for such assignment.
ADOPTED by the Lakeville City Council the 19'h day of June 2017
CITY OF LAKEVILLE
BY:
Douglas P Berson, Mayor
ATTEST:
Charlene Friedges, City
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EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
All that part of the Northwest Quarter of Section 3, Township 113, Range 20, lying southerly of
a line drawn northeasterly from the west line of said Northwest Quarter, distant 988.42 feet south
of the northwest corner of said Northwest Quarter to a point on the east line of said Northwest
Quarter distant 818.14 feet south of the northeast corner, and which lies northerly of the south
1000 feet thereof.
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FIRST AMENDMENT
TO
DEVELOPMENT CONTRACT
LA UNCH PARK FIRST ADDITION
THIS FIRST AMENDMENT TO DEVELOPMENT CONTRACT ("Amendment") is made
this 14hday of June, 2017, by and between the CITY OF LAKEVILLE, a Minnesota municipal
corporation ("City") and LAKEVILLE 222ND 2017, LLC, a Minnesota limited liability company (the
"Developer").
1. EFFECT OF DEVELOPMENT CONTRACT. The Development Contract dated
, 2017, and filed for record with the Dakota County Recorder on ,
as Document No. for the plat of Launch Park First Addition ("Development Contract")
shall remain in full force and effect except as specifically amended herein.
2. AMENDMENT TO PARAGRAPH 27(B). Paragraph 27(B) of the Development
Contract is amended to read as follows:
B. Before the City signs the final plat, the Developer shall furnish to the City an
appropriately executed public temporary turnaround easement, in recordable form, and
shall also provide a cash fee of $2,000.00 for future removal of the temporary cul-de-sac.
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The Developer will be required to construct and extend 222nd Street to the east plat
boundary of Outlot A, Launch Park First Addition, at the time Outlot A is platted into lots
and blocks.
3. AMENDMENT TO PARAGRAPH 27(E). Paragraph 27(E) of the Development
Contract is amended to read as follows:
E. At its April 17, 2017 meeting, the City Council approved a resolution accepting a
petition from the Developer requesting the City construct the required public improvements
associated with Launch Park First Addition and be assessed for the entire cost of the
project. At its same meeting, the Council approved a resolution approving a feasibility
report, ordering improvements and declaring intent to bond for the 222nd Street and Utility
Improvement Project, City Project 17-07. The project would include the construction of
222nd Street, watermain, sanitary sewer, storm sewer, and turn lane improvements along
Cedar Avenue. The City intends to receive bids and award a contract for construction in
June, 2017. The Developer shall submit the security required by the terms of Section 28
(Public Construction Costs) with the final plat guaranteeing completion of the public
improvements and costs for construction of public improvements, surveying, design,
inspection, as-builts, legal fees, engineering administration.
The property to be platted as Lot 1, Block 1 and Outlot A, Launch Park First Addition, is
hereby subjected to the following special assessments benefitting the properties for a
portion of the costs of City Improvement Project 17-07 (the "Improvements"), which include
associated legal expenses, engineering administration and staff time, financing (bond
issuance), construction observation, surveying, record drawing preparation, permits and
publication fees. The City will assess a portion of the total cost of the Improvements to Lot
1, Block 1 and Outlot A, Launch Park First Addition based on the Iotloutlot frontage of such
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properties with 222nd Street right-of-way in the amount of $701,214.38, to be split between
and assessed against such properties as follows: $361,826.62 to Lot 1, Block 1 and
$339,387-76 to Outlot A. The special assessment shall be deemed adopted on the date
this Agreement has been signed by all parties. The assessment shall be spread without
deferment over a ten (10) year period in equal annual installments, together with interest
of five percent (5%) per year on the unpaid balance. The first installment shall be payable
with taxes paid in 2018. Developer, its successors and assigns, waive any and all
procedural and substantive objections to the Public Improvements and special
assessment, including but not limited to hearing requirements and any claim that the
assessment exceeds the benefit to the Subject Property. Developer waives any appeal
rights otherwise available pursuant to Minn. Stat. § 429.081.
Developer shall be responsible for payment of all costs of the Improvements, which
include associated legal expenses, engineering administration and staff time, financing
(bond issuance), construction observation, surveying, record drawing preparation, permits
and publication fees that exceed the original amount assessed to all properties assessed
for the costs of the Improvements, located both within and outside the Launch Park First
Addition plat. Developer shall reimburse the City for such excess costs within 30 days of
the receipt of an invoice for the costs by the City.
In the event that the total costs of the Improvements are less than the amounts
assessed by the City for the Improvements to all parcels within and outside the Launch
Park First Addition plat (the "Deficiency"), the respective assessments to Lot 1 Block 1 and
Outlot A will each be reduced proportionately by multiplying the amount of the Deficiency
by a fraction, the numerator of which is the assessment amount for the applicable parcel
set forth above, and the denominator of which is the total assessment amount for all
parcels assessed for the Improvements.
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4. AMENDMENT TO PARAGRAPH 28. Paragraph 28 of the Development Contract
is amended to read as follows:
28. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the terms
of this Contract, payment of real estate taxes including interest and penalties, payment of
special assessments, payment of the costs of all public improvements, and construction of all
public improvements, the Developer shall furnish the City with a cash escrow, letter of credit or
alternate security, in the form attached hereto, from a bank ("security") for $475,579.00. If an
alternate security is furnished, the Developer shall also furnish a letter of credit for twenty-five
percent (25%) of the alternate security amount to cover any contract increases. The amount of
the security was calculated as follows:
CONSTRUCTION COSTS:
A. Grading, Erosion Control, and Restoration $291,000.00
CONSTRUCTION SUB -TOTAL $2919000.00
OTHER COSTS:
A. Developer's Design (3.0%) $ 8,730.00
B. Developer's Construction Survey (2.5%) 7,275.00
C. City Legal Expenses (Est. 0.5%) 1,455.00
D. City Construction Observation (Est. 5.0%) 14,550.00
E. Developer's Record Drawings (0.5%) 1,455.00
F. Landscaping 138,414.00
G. Stop Signs and Stop Bars 1,500.00
H. Lot Corners/Iron Monuments 200.00
1. Stormwater Basin Revision 10,000.00
OTHER COSTS SUB -TOTAL $183,579.00
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TOTAL SECURITIES: $475,579.00
This breakdown is for historical reference; it is not a restriction on the use of the security. The
bank shall be subject to the approval of the City Administrator. The City may draw down the
applicable security, on five (5) business days written notice to the Developer, for any violation of
the terms of this Contract pertaining to the applicable security or without notice if the applicable
security is allowed to lapse prior to the end of the required term. If the required public
improvements are not completed at least thirty (30) days prior to the expiration of the applicable
security, the City may also draw it down without notice. If the applicable security is drawn down,
the proceeds shall be used to cure the default. Upon receipt of proof satisfactory to the City that
work has been completed and financial obligations to the City have been satisfied, with City
approval the applicable security may be reduced from time to time by ninety percent (90%) of the
financial obligations that have been satisfied. Ten percent (10%) of the amounts certified by the
Developer's engineer shall be retained from the applicable security as security until all work has
been completed, all financial obligations to the City satisfied, the required "as constructed" plans
have been received by the City, a warranty security is provided, and the improvements are
accepted by the City Council. The City's standard specifications for utility and street construction
outline procedures for security reductions. Notwithstanding the foregoing, if the Developer enters
into a contract to construct the site improvements, the City may draw on the security for any
violation of this Contract and will not be restricted to drawings on the applicable security.
5. AMENDMENT TO PARAGRAPH 29. Paragraph 29 of the Development Contract
is amended to read as follows:
29. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash
requirements under this Contract which must be furnished to the City prior to the City Council
signing the final plat:
A. Sanitary Sewer Availability Charge to be paid with
building permit
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B. Park Dedication Fee $ 107,569.00
C. Trunk Storm Sewer Area Charge 257,004.00
D. Traffic Control Signs 900.00
E. Streetlight Operating Fee 1,711.00
F. Future Upgrade of Cedar Avenue 106,522.00
G. Environmental Resources Fee 2,948.00
H. Future Removal of Temporary Cul-de-sac 2,000.00
I. City Base Map Updating 180.00
J. City Engineering Administration 8,730.00
(3% for letters of credit or 3.25% for alternate disbursement)
TOTAL CASH REQUIREMENTS $ 487,554.04
6. CONDITION OF AMENDMENT. Although this Amendment shall not encumber or
burden the property located in the City of Lakeville, County of Dakota and legally described in
Exhibit A, attached hereto and incorporated herein, ("Hat Trick Parcel"), a condition of this
Amendment is execution by the owner of the Hat Trick Parcel of a Public Improvement and
Special Assessment Agreement in the amount of $701,214.38 for assessment of its share of the
total costs of the Improvements against the Hat Trick Parcel.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed this
day of J2017.
[The remainder of this page has been intentionally left blank.
Signature pages follow.]
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CITY OF LAKEVILLE
-54
�'®r"Wm
!7 M
�■ _ ,'mderson,
(SEAL)
AND
Charlene Friedges, City erk
STATE OF MINNESOTA
)ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this Iel day of
J Ufnr.- , 2017, by Douglas P. Anderson and by Charlene Friedges, the Mayor and
City Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the
corporation and pursuant to the authority granted by its City Council.
NOTARY P B C
l�
`1�/JYiJJJ_i_�✓-.r_/l_ ���JJ_ ��i,I_'�r1!�Jl
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DEVELOPER:
LAKEVILLE 222N° kOI7 LLC
BY:
Its:
"Q Pi✓
STATE OF MINNESOTA }
}ss.
COUNTY OF DAKOTA }
The foregoing instrument was acknowledged before me this 3 h day of
75u nt , 2017, by D Civ'\ the
ct,-\" �-c 2D&(NC&Q&r of Lakeville 222nd 2017, LLC, a Minnesota limited
liability company.
a.aivA1�: ON
DRAFTED BY:
CAMPBELL, KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, MN 55121
Telephone: 651-452-5000
AM Plcj h
8
192794v4
EXHIBIT A
LEGAL DESCRIPTION OF HAT TRICK PARCEL
All that part of the Northwest Quarter of Section 3, Township 113, Range 20, lying northerly of a
line drawn northeasterly from the west line of said Northwest Quarter, distant 988.42 feet south
of the northwest corner of said Northwest Quarter to a point on the east line of said Northwest
Quarter distant 818.14 feet south of the northeast corner.
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MORTGAGEE CONSENT
TO
DEVELOPMENT CONTRACT
ALLIANCE BANK, a Minnesota corporation, which holds a mortgage on the subject
property, the development of which is governed by the Development Contract referenced in the
foregoing Amendment, agrees that the Development Contract, as amended by the Amendment,
shall remain in full force and effect even if it forecloses on its mortgage.
Dated this 13 day of June, 2017.
Its: Vice President
STATE OF MINNESOTA }
}SS.
COUNTY OF RAMSEY }
The foregoing instrument was acknowledged before me this 13 day of June, 2017, by
Justin Betzold the Vice President of Alliance Bank, a Minnesota corporation, on behalf of said
corporation.
1
1.1.NOTARY PUBLt
:
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
651-452-5000
AM Plcj h
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1CKtAT:1E=Public-Minnesota
FEE OWNER CONSENT
TO
DEVELOPMENT CONTRACT
HAT TRICK INVESTMENTS, LLC, a Minnesota limited liability company, fee
owner of all or part of the subject property, the development of which is governed by the
foregoing Development Contract, affirms and consents to the provisions thereof and agrees to be
bound by the provisions as the same may apply to that portion of the subject property owned by
them, including the assessments under Paragraph 27(E) and hereby waives any appeal rights for
the assessments otherwise available pursuant to Minn. Stat. § 429.081.
Dated this a day of u 72017.
HAT TRICK INVESTMENTS, LLC
BY:
STATE OF MINNESOTA )
}ss.
COUNTY OF }
The foregoing instrument was acknowledged before me this 'day of ':)Ur\- C , 2017,
by k c -r ,the d _E�� s ; n , of Hat Trick Investments, LLC,
a Minnesota lim' ed liability company, on its behalf.
Notary Pub is
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, #290
Eagan, Minnesota 55121
(651)452-5000
Il
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